In this post, I shared the top 8 platforms where you can earn passive income on your NFTS.
NFTs are big deals! In fact, they have exploded in popularity to the point that almost everyone wants to own them.
However, the issue with NFTs is that they are illiquid assets.
Owning an NFT is similar to owning an artwork; you can only sell it if someone is willing to buy it.
However, in recent times, we now have platforms and NFT projects that let you earn passive income on your idle NFTs.
Tag along as I show you top yield generating NFT platforms and projects.
Post Summary
Let’s get started!
Top 8 Platforms To Earn Passive Income On Your NFT
1. reNFT
reNFT was co-founded by Nick vale in 2020.
It is a rental protocol that enables the lending and borrowing of NFTs.
Typically, it is a marketplace where NFT owners can lease their NFTs on interest to borrowers.
In addition, NFT projects can integrate reNFT Whitelabel into their rental marketplace to allow for NFT renting for yields.
reNFT is a multi-chain protocol. It supports tons of NFT collections, from gaming assets, event tickets, art, and much more.
An NFT owner on reNFT can decide to lease their NFT as “collateral-free” for a daily upfront payment.
Alternatively, they can lease their NFTs as “collateralized,” which requires lenders to deposit collateral as well as a rental fee to have access to the NFT.
2. NFTX
NFTX was founded in January 2021 by Alex Gausman.
It is a DeFi platform that enables the creation of ERC-20 tokens backed by NFTs.
NFTX has various vaults unique to specific NFT collections.
As an NFT owner, you can deposit your NFT into the vault that matches your NFT to mint a fungible ERC20 token dubbed vTokens.
You can earn passive income with these vTokens in the following ways:
- Earn protocol fees
- Earn trading fees as a liquidity provider
- Farm with stablecoins using vTokens as loan collateral
- Staking
In addition, you can use the vTokens to renew your NFT from the vault.
NFTX supports the Ethereum-based NFTs. It also allows anyone to create a vault for any Ethereum-based NFT.
3. LooksRare
LooksRare was founded in January 2022 by the pseudonyms “Zodd” and “Guts”.
It is an NFT marketplace where NFT enthusiasts can buy, sell NFT and stake the LOOKS token.
LOOKS is the native token of LooksRare used for incentive.
Typically, the platform actively rewards users for using its products.
When a user buys, sells, or lists their NFT on LookRare, they are rewarded with the LOOKS tokens.
The LOOKS token can be staked for more rewards.
{Also Read: LooksRare NFT Marketplace – This Is How It Overtook OpenSea In Trading Volume!}
4. NFTfi
NFTfi was founded in February 2020 by Stephen Young.
It is a peer-to-peer marketplace where users can obtain a crypto loan against their NFTs.
Borrowers use their NFTs as collateral to obtain crypto loans, whereas lenders lend out their crypto at an interest rate.
Currently (August 2022), NFTfi only supports the Ethereum blockchain.
Furthermore, borrowers can use any NFT as collateral but can only obtain loans in two cryptocurrencies wETH/DAI.
In addition, only NFTs from a verified vendor can be used as collateral.
Once the loan is made, the borrower’s NFT is transferred and held in custody in a smart contract until it is repaid.
In addition, every loan on NFTfi has an agreed-upon expiry date between the borrower and the lender.
If the loan does not get repaid, the lender has the right to claim the borrower’s NFT.
Now, you may ask, how does an NFT owner generate passive income on NFTfi?
When the borrower obtains a loan in wETH/DAI, he can use it to provide liquidity, lend it or stake it on different DeFi platforms like Uniswap for passive income.
In addition, NFTfi allows you to quickly convert your NFT to cash anytime you need money urgently and there isn’t yet a buyer for your NFT.
NB: The 4 platforms discussed above are protocols designed for passive income earning on NFT. However, the subsequent platforms that I will discuss below are yield-generating NFTs.
5. Band Royalty
Band Royalty was co-founded in 2021 by Noble DraKoln.
It is an NFT marketplace dedicated to the music industry.
On this platform, NFT holders can earn a share of the revenue generated by different music albums as royalties paid to them.
Band Royalty has a native NFT collection called the “Band NFT” and three different royalty staking pools.
To start generating income on NFTs, users must purchase the Band NFT and stake it in the royalty pools.
As the Band Royalty grows larger, the royalty income stream increases for NFT owners who have staked them.
6. MOBOX
MOBOX was co-founded in April 2021 by Vadim Kot.
It is an ecosystem of NFT play-to-earn games built on the Binance Smart Chain.
NFT lovers can earn rewards for holding the “MOMO NFTs,” on MOBOX.
“MOMO NFTs” are MOBOX native NFTs. They can be obtained from mystery boxes in the game or purchased on the marketplace.
Holders of “MOMO NFTS, can stake them on the platform to earn MBOX tokens.
In addition, “MOMO NFTs” can also be leased to other users to earn interest.
7. Biswap Marketplace
Biswap Marketplace is one of the popular NFT marketplaces on the Binance Smart Chain.
It was founded in November 2021 by an anonymous team.
Biswap Marketplace allows users to buy/sell different collections of NFTs or list their NFTs for sale.
In addition, it enables users to earn a constant income through NFT staking.
“Robbies Earn” is the native NFT of Biswap.
To start earning income with NFT, users need to buy “Robbies Earn” and stake them in a pool.
When you stake NFTs on Biswap, you earn three tokens, BSW, BNB, and USDT. You also enjoy a high APY of over 200%.
{Also Read: Biswap NFT Marketplace – See Why It Is The Best Place To Trade NFT!}
8. WhenStaking
WhenStaking is an NFT staking protocol developed by the team at Onessus.
Onessus is a company that creates dApps for various Web3 play-to-earn games and NFT projects.
Some of its existing projects include NiftyVille, Project Venom, and HodlGod.
In late 2021, the team created “WhenStaking” to reward users who own any NFT native to its product suite or partnering NFT.
These NFT holders can stake their NFT on “WhenStaking” for rewards. To earn extra yields on their staked NFT, they can stake VOID tokens together with their NFT.
When users stake their NFT, they get the yield up front and a clone of the NFT called “Lease NFT.”
The “Lease NFT” can be sold in the marketplace; holders can use it to earn yields and participate in games until the original NFT is unstaked.
Let’s meet in the next section!
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Conclusion
There you have the top platforms and NFT projects to earn passive income from your NFT.
So, do you hold NFTs like Cryptopunks, BAYC, and more because there isn’t a buyer yet?
You can put them to work on NFTX, NFTfi, and other platforms discussed in this post for yields.
Or perhaps you’re looking to own an NFT that generates passive income for you while you’re holding it.
Feel free to consider the NFT projects discussed in this post.
This brings us to the end of this post. It’s time to hear from you.
Do you have an idle NFT? Would you love to earn passive income from them?
Is there a top NFT platform or project for passive income that I didn’t mention?
Put your thoughts in the comment section.
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